The footwear sector of Bangladesh has put an impressive performance in
last decades in tapping its comparative advantages in brands manufacturing &
exporting quality handmade shoes at most competitive price. Among the one dozens major footwear-exporting countries, none has grown faster than Bangladesh
since 1990s & even since 1995, no major Asian exporter of footwear has
exhibited higher growth rates than that of Bangladesh. Bangladesh should be
proud of this industry but at the same time, this industry has made the country
vulnerable.

The reason behind the higher growth rate in footwear sector is possible,
due to the preferential treatment of quota protection in the US and GSP
facilities in the EU. Due to globalization & trade liberalization under WTO
(world trade organization), the world market environment is changing fast. It
will be substantially difficult after 2012, as there will be no quota
restriction for footwear items to export in US market.

General
Situation in Footwear industry:

Bangladesh shoe market is having almost 30 years experience by now. Though,
at the beginning the market was producing only basic product like sandal, Moccasin,Espadrille,Pump shoe ,sports shoe etc. As time goes by, Bangladesh market has sent their many
workers to Italy for training on how to make good shoes in a professional
manner. Gradually this market started making value added items like Goodyear welted shoe, Bespoke shoe,Horse riding boot ,Made to measure shoe,Made to order shoes,Velvet Loafers in many varieties to maintain with current market demand in global world.

In those days back in 90’s
major importers captured this market. Trend to their business

was they used to handle
leather & accessories
from Hong Kong, China, Korea, Taiwan, and Indonesia and even from India
& Pakistan. At that time this market was totally import base, everything
had to import which caused a lot of problems like longer lead time &
sometime leather or accessories not come right eventually order not confirmed or
had to send the goods by air.

After experiencing all
these hassle, Bangladeshi entrepreneurs have started giving their attention to
prepare themselves with proper backward linkage facility.

The key components of the
project are to build awareness and ensure occupational health & safety,
human resource management, labour & welfare and continued monitoring of
child labour, Implementing of the projects will help achieve ISO-9000, SA-8000
& SA-14000 certification at factory level. The project will also facilitate
increase in productivity and quality improvement.

Since this sector is the
highest income source for the country, this is an essential step commonly taken
& agreed upon by all opposition & Govt. party that, this sector cannot be interrupted under
any circumstances. So this market will never be hit by there political unrest.

Bangladesh could have a billion dollar footwear export sector by 2013 claim local shoe manufacturers on the basis of both the current growth in shipments and the increased production capacity in factories under construction. If the assessment is correct, in a three-year period the level of exports can increase five-fold from the $205 million worth of shoes that were exported in the last fiscal year that ended in June 2010.

In the first four months of the current fiscal year there has been $98 million worth of exports, a 65 per cent increase from the same period last year. Taking this rate of growth into account, it is estimated that the current fiscal year’s footwear export is likely to cross $300 million. Japan and Germany are now the biggest markets for Bangladeshi footwear but US buyers are increasingly showing interest in sourcing from Bangladesh. The Export Processing Zones at present have 18 shoe and leather goods factories but there are at least seven large factories under construction, mostly owned by big manufacturers in the shoe world. The factories under construction include Korean company Youngone’s footwear complex which is said to be the largest in Asia. This year Youngone — which produces sportswear for Nike and other leading brands — estimates that it will export $56 million worth of footwear. However, when the new factory is completed next year the company expects to increase exports to at least $250 million by the end of 2013.

Taiwanese shoe manufacturer Pau Chen, which employs about 4,00,000 workers in its factories in China and 50,000 in Vietnam, is also building a large manufacturing facility in Chittagong. Australian manufacturer Bonbon Shoe, a supplier to Hugo Boss, and Xen Chen and Genford of Taiwan, are also building footwear factories in Bangladesh. Apex- Adelchi also has a new factory that will soon start production. With an annual turnover of about $100 million, the Bangladesh-Italy joint venture is now the largest exporter of footwear. However, with a new joint venture factory, Blue Ocean Footwear, due to go into production by February 2011, Apex will get involved with a turnover of nearly $200 million of footwear export by 2013.